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Home > Business & Careers > Accounting   »   How can I calculate net profit Margin?

 
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Old Feb 9, 2009, 12:53 AM
rani 1979
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How can I calculate net profit Margin?

How can I calculate net profit Margin?

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Old Feb 9, 2009, 03:25 AM   #2  
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Net profit divided by net revenues, often expressed as a percentage. This number is an indication of how effective a company is at cost control. The higher the net profit margin is, the more effective the company is at converting revenue into actual profit. The net profit margin is a good way of comparing companies in the same industry, since such companies are generally subject to similar business conditions. However, the net profit margins are also a good way to to compare companies in different industries in order to gauge which industries are relatively more profitable. also called net margin.
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